David Jones lifts profit guidance

David Jones Limited has just released its latest financial results, and has witnessed a small improvement on last year with 2Q10 like-for-like sales increasing by 3.1 per cent. The retailer has also increased its FY10 financial guidance.

Mark McInnes, David Jones CEO, commented on the results.

“Despite a very competitive retail environment in 2Q10 with heavy activity by retailers struggling to maintain sales momentum without the help of the December 2008 stimulus package, I am pleased to report that our Gross Profit Margin and our Earnings Before Interest and Tax Margin improved compared to this time last year,” he said.

“Our costs and inventory were also tightly managed and as a result we have increased our 1H10 Profit after Tax Guidance to approximately 10 per cent from 0 – 5 per cent.”

McInnes said that he was confident in the long term future of the company.

“We have a strong business model, a loyal customer base and the best national and international brand portfolio in Australia,” he said.

“Our strong balance sheet, low debt levels, unique market position, medium term growth program and strong management team gives us confidence to provide FY11 PAT Guidance of 5 – 10 per cent growth.”

In terms of the company’s redevelopment schedule, McInnes stated that the Bourke Street store is expected to be completed in 1Q10, Kotara to be completed in November 2010 and Claremont to be open in February 2011.

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